Chapter 13 Pricing, Promoting and Distributing Products

Question 1

Two types of pricing

Answer 1

Profit-maximizing
Market-share

Question 2

Cost-oriented pricing

Answer 2

selling price=seller’s cost + profit

Question 3

Markup percentage

Answer 3

Markup/sales price

Question 4

Breakeven point

Answer 4

Total fixed cost (per unit) / (Price(per unit)-variable cost(per unti)

Question 5

Price skimming

Answer 5

Initial high price to account for all costs

Question 6

Penetration pricing

Answer 6

initial low price to increase customer base

Question 7

price lining

Answer 7

limited pricing options

Question 8

Promotional tools

Answer 8

Advertising:
Personal selling:
Sales promotions:
Direct marketing:
Publicity, Public relations:

Question 9

Advertising

Answer 9

: producing paid advertisements (informing about your product

Question 10

Personal selling

Answer 10

direct communication between a salesperson and a potential customer

Question 11

Sales promotions

Answer 11

discounts

Question 12

direct marketing

Answer 12

catalogues, door to door sales, flyers
Lululemon - just for you
Amazon - reccomended for you section

Question 13

Publicity and Public relations

Answer 13

media advertising, sponsorships (building brand exposure)

Question 14

Direct distribution

Answer 14

Producer to end user

Question 15

Retail distribution

Answer 15

Producer -> retailer -> end user

Question 16

Wholesale distribution

Answer 16

Producer -> Wholesaler -> Retailer -> End user

Question 17

Distribution channel by agents or brokers

Answer 17

Producer -> Agent/Broker -> End Users

Question 18

Physical distribution

Answer 18

Manufacturer -> customers
warehousing operations, transportation operations